Contract Closeout Flashcards

Under FAR 4.804-1, within how many months after all deliverables have been received should a contracting officer initiate closeout for a fixed-price contract that does not exceed the simplified acquisition threshold?

Answer: 6 months

FAR 4.804-1(a)(1) specifies that fixed-price contracts not exceeding the simplified acquisition threshold should be closed out within 6 months after the contracting officer receives evidence of physical completion.

Under FAR 4.804-1, what is the recommended maximum time for initiating closeout on contracts that require settlement of indirect cost rates?

Answer: 36 months after physical completion

FAR 4.804-1(a)(3) allows up to 36 months after physical completion for contracts requiring settlement of indirect cost rates, reflecting the time needed for DCAA audits and rate negotiations.

What is the primary purpose of a 'quick-closeout procedure' under FAR 42.708?

Answer: To negotiate indirect cost rates on a contract-by-contract basis without waiting for a final rate audit

FAR 42.708 allows contracting officers and contractors to negotiate final indirect cost rates on a specific contract when the amount of unsettled costs is relatively small, avoiding years-long delays waiting for DCAA final audits across all contracts.

Which of the following actions is required to be completed BEFORE a contract file can be officially closed under FAR 4.804-5?

Answer: Verification that all outstanding contractor claims and government claims have been settled

FAR 4.804-5 lists specific actions required before closing a contract file, including settling all contractor claims, disposing of government property, and ensuring final payment. Open claims prevent official closeout.

On a cost-reimbursement contract, which document does the contractor typically submit to trigger final payment and initiate the closeout process?

Answer: A final voucher or invoice covering all unreimbursed allowable costs

The contractor submits a final voucher (for cost-reimbursement contracts) or final invoice (for fixed-price contracts) to request payment of all remaining allowable costs. This submission initiates the final payment and closeout sequence.

During contract closeout, a 'contractor's release of claims' is significant because it:

Answer: Documents that the contractor has no further claims against the government arising from the contract

A contractor's release of claims is a written statement by the contractor confirming it has no remaining claims against the government for that contract. It protects the government from future disputes after final payment is made and the file is closed.